Commodity Trading Tips for Crudeoil by Kedia Commodity

Ajay Kumar Kedia 12 August 2013

Crudeoil yesterday settled up 0.33% at 6415 as appetite for growth-linked assets improved after data showed that Chinese industrial output rose more-than-forecast in July, easing concerns over a slowdown in the world's second-largest economy. Oil prices were boosted after official data showed that Chinese industrial output rose significantly more-than-forecast in July and consumer price inflation remained unchanged. Industrial production in China rose 9.7% last month, beating expectations for a 9.0% increase and picking up from a gain of 8.9% in June. In another report, the NBS said CPI remained unchanged at 2.7% last month. Market expected a July reading of 2.8%. Chinese trade data released Thursday showed that both imports and exports rose in July, easing concerns over a slowdown in the world's second-largest economy. China said it imported 26.11mmt of crude oil in July, 20% more than the same period last year. Despite Friday's upbeat performance, oil prices lost 0.6% on the week amid ongoing speculation over how soon the Federal Reserve may start to pull back its asset purchase program. The Fed's stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar. In the week ahead, investors will be closely watching U. S. data on retail sales and consumer inflation, as well as reports from the housing and manufacturing sectors. Investors have closely been looking out for U. S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases. Technically market is getting support at 6400 and below same could see a test of 6386 level, And resistance is now likely to be seen at 6428, a move above could see prices testing 6442.